Wall Street futures slip amid rising oil and AI concerns

U.S. stock index futures declined on Tuesday, driven by rising crude oil prices, elevated Treasury yields, and uncertainty regarding demand for artificial intelligence. Major tech companies, including Alphabet and Microsoft, saw premarket declines of more than 1%, while chipmakers traded within a narrow range. Nvidia experienced a marginal increase.

Market anxiety has been fueled by calls from leading AI firms to slow technological development due to safety concerns. This comes amid broader economic pressures, including above-target inflation and fears of increased borrowing costs. Traders are currently pricing in a 92% chance of a Federal Reserve interest rate hike.

Additionally, ongoing conflict in the Middle East has contributed to higher energy costs. Brent crude futures rose over 2% to $108.06, and U.S. West Texas Intermediate futures increased by more than 2% to $103.76. Meanwhile, the yield on the benchmark 10-year U.S. Treasury note reached its highest level since 2007.